Nyana company offers a set of building blocks to customers, Accounting Basics

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Nyana company offers a set of building blocks to customers

Problem

Nyana Company offers a set of building blocks to customers who send in 3 UPC codes from Nyana cereal, along with 50¢. The block sets cost Nyana $1.30 each to purchase and 70¢ each to mail to customers. During 2017, Nyana sold 1,536,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2017, 153,600 UPC codes were redeemed. Prepare Nyana's December 31, 2017, adjusting entry.

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Accounting Basics: Nyana company offers a set of building blocks to customers

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Accounting Basics: Nyana company offers a set of building blocks to customers

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